Posts Tagged ‘funding’

Domestic and international competition is forcing Canadian businesses to develop new or improved products, increase productivity and expand sales in global markets. Financing for innovation or growth has always been a challenge for many companies in Canada. Both the federal and provincial governments provide their financial support through over $20 billion in various funding programs each year. Sourcing funding from both SR&ED tax credits and other direct government incentive programs can give companies the edge they need to take their business to the next level.

If the inventors of the technological innovations depicted in the Star Trek franchise conducted their research and development (R&D) in Canada and had been Canadian-Controlled Private Corporations, they could have been eligible for funding using the Scientific Research and Experimental Development (SR&ED) program. In SR&ED, there are several industries and sub-sectors that are eligible for this funding. Let’s take a look at four technological innovations shown in Star Trek and which sub-sector and industry they would fall under:

Doctor Noonian Soong’s Androids: Soong went through a few iterations of androids before he developed Data, a robotic system that was stable and technologically advanced enough to work safely side by side with his human counterparts. Data had the capacity to learn from his surroundings and fellow crew mates. Soong’s work in cybernetics could have been eligible for funding through the artificial intelligence sub-sector in the Information Technology Industry.

VISOR: This was a medical device that provided vision to the blind. It sent electromagnetic signals to the brain using neural implants. Because this was an electromedical device that used known electromagnetic signals in a new way as well as improved patient care, the inventors of the VISOR could have been eligible for funding through the electromedical and electrotherapeutic apparatus sub-sectors in the Biotech Industry.

Tricorder: This was a highly advanced device to scan, record, and analyze biological, electromagnetic, and chemical data. There had been several iterations of the tricorder, which were used by engineers and medical doctors. Because this was a device designed to improve the detection and analysis of data, this invention could have been eligible for SR&ED funding through the data transmission protocols and firmware and software development sub-sectors in the Information Technology Industry.

Holodeck – One of the main purposes of this system was to allow the crew to train or unwind from a stressful day using interactive gaming technology. A plethora of stories and situations could be programmed into the holodeck. Although this invention could potentially receive funding through the gaming sub-sector in the Information Technology Industry because of advanced development of a gaming engine, the interactive property of the holodeck aligns with eligibility criteria for funding through the Digital Gaming Industry.

You may have noticed that the inventors went through several design iterations as well made improvements upon existing technology. In SR&ED, the more revisions a project has, the better.

The final 2015-2016 intake for the Canada Media Fund’s Experimental Stream (Production) will be closing on September 22, 2015, while the Development and Marketing & Promotion segments will be closing on October 6, 2015.

The Experimental Stream of the Canada Media Fund (CMF) is designed to support Canadian interactive digital media content, including application software, which demonstrates innovation in the field. Eligible projects may qualify under one of the three aforementioned segments, and the awarding of funding is processed through a jury of renowned digital pioneers and experts.

The Experimental Stream is funded through an investment of $27.0 million for English projects and $13.0 million for French projects in the 2015-2015 fiscal year. This new round of funding comes with a few significant changes to the program, such as:

An increased maximum overall cap contribution from CMF, up to $1.2 million from $1.0 million;

A decreased maximum contribution from CMF for Development projects, down to $400 thousand from $300 thousand;

An increased maximum contribution for Production projects, up to $1.2 million from $1.0 million;

An increased focus on previous success working with the CMF on eligible projects;

An increased focus on meaningful participatory experience as part of the definition of “interactivity”; and

A varied Development recoupment policy shifting all applications to a uniform model which allows for CMF advances to be converted into recoupable investments in the production.

In order to sustain a thriving economy, the government of Canada continually invests in business growth and expansion through various direct and indirect sources of funding. Over the past five years approximately 35% of Canadian gross domestic expenditure on R&D was financed by both direct and indirect government funding initiatives. Although the majority of financing is in the form of indirect funding, such as the SR&ED tax credit program, the Canadian government has recently increased emphasis on direct government funding sources such as repayable and non-repayable grants. Direct and indirect funding sources can work together to provide solutions for business growth at various stages of advancement from product development to global market expansion, thereby, enabling businesses to continually improve and grow.

Large-scale business expansion projects may be eligible for direct funding in the form of a repayable, interest-free loan through the Investing in Business Growth and Prosperity (IBGP) program. The IBGP program helps established business with global market share potential and innovative prospects to increase competitiveness and growth as well as create jobs by supporting the implementation of new technologies/ processes in addition to expansion of existing markets and facilities.

After the expansion project is complete, eligible SR&ED expenditures related to experimental development can generate indirect funding via Investment Tax Credits (up to 35% of eligible expenditures for CCPC’s and 15% for foreign owned/ public corporations) for costs already incurred. This provides a source of annual funding or tax savings that can be re-invested into innovation and growth.

Various funding opportunities may be leveraged in conjunction to suit the specific objectives and needs of your company. Our NorthBridge team of business analysts can help identify eligible projects for both SR&ED and grant funding programs. We also assist with the completion of application information, the preparation of financial information, the creation of business plans, and the required reporting after application submission.

The Yves Landry Foundation’s Achieving Innovation and Manufacturing Excellence (AIME) Global initiative, a program supporting employee training to support innovation, has opened once again as of December 1, 2014. The federal government has recently injected $9M in funding to the program, on top of the original $6M invested, to help southern Ontario manufacturers achieve a competitive advantage and ensure they have skilled and knowledgeable employees. The Yves Landry AIME Global fund looks to support 200 manufacturers through AIME and create and maintain 2,000 manufacturing jobs while training 7,000 more. Administered by FedDev Ontario and the Yves Landry Foundation, the program will provide 25-50% of training costs up to $50,000, with the applying companying providing the remaining funds.

Companies interested in applying must be manufacturers making to-market products and have 10-1000 employees operating in southern Ontario, and they must have been in business for at least three years, with strong financials over that period. First time applicants to the program are eligible to have 50% of their costs covered, while applicants who applied more than 24 months ago are welcome to apply again, but are only eligible for 25% of their costs matched. The fund will cover both direct and indirect training costs, including trainer fees, trainee wages, accommodation costs, and material costs.

In terms of eligible training, the program will support training in relation to the adaption of new technology or procedures that support innovation and increase global competitiveness through new domestic or export markets. Also, training that provides high-value skills (such as new engineering, software, manufacturing methods, or technologies) to employees in order to increase global competitiveness will also be covered. The key factor in determining eligibility is the creation of new global markets or export opportunities, in order to demonstrate southern Ontario’s growth and strength as a manufacturing centre.

We here at NorthBridge have experience with the Yves Landry program and can help you through each step of the process, from project identification and feasibility assessment through to the a preliminary evaluation, and then a full application as appropriate. For more information, please contact us at info@northbridgeconsultants.com.